Los Angeles daily herald., 1887-03-20
DAILY HERALD.
JOHN I. GAFFEY.
Some Interesting Matter
Concerning Taxation.
HOW THE BANKS AVOID IT.
Rich Men Pay Little Taxes on Per-
sonal Property-Instructions
to Assessors.

Rich Men Pay Little Taxes on fef-
sonal Experimentation
to Assessors.
Mr.. John 7. Ga6ey. one OF the clear
nt.hsaded and hardect-working members
Il 10 State Board of Equalization, is
having Z short visit TO his home in Los
Angeles. He has spent the past three |
in San Francisco and Sacra- |
nsnto, getting an insight of the assess
uents in the northern regions. So far
= the southern coast counties are con-
csrned he needs very little information,
lor Il b questionable if any man in the
State 4 better posted on Southern Cali
|orpis values and other matters than
Joha T. Gaffey. A HERALD representa-
live saw Mr.. Gaffey yesterday afternoon
and bad short conversation with him.
The gentleman says that the chief diff.
Guilty experienced BY the State Board is
In eaualizing the assessments made by
Assessors in different portions of the
state. Fer instance, the Western Union
Tslsgrsp ph line in the State of California
& civ assessed at 500, 900. Iu Trinity
eeunty Il is assessed at $3 . mile and in
San Aateo county at $S66 Is per mile. 4
Now, the real income Of the Western
Union in this state must run into the
millions, and we are trying hard to get
At The true income in order to make the
corporation bear it's full share of the
burden Of taxation. Senator Yell in
troduced an amendment allowing the
State Board Of Equalization to assess
corporations of this character, in
stead of the different County As
sessors, - now. This amendment
WAS beaten, and we are now
endeavoring to get the Assessors to as
nearly a. possible arrive at the income
Of the Western Union in each county
and che value of the franchise and by
that means we can find out the total
value and apportion it according to the
number of miles in each county.
"Tclephone lines are another source OF
vexation. They are assessed at most
ridiculously low rates in some counties
and ct very high rates in other counties.
Take Los Angeles and there are about
100 miles of telephone wire assessed ct
go per mile or 5000. Now there must
DO total Of 1000 boxes in the county,
yielding an income to the company Of
go, 900 per year. What we want to do
= 49, L. H. 20 ha
comes derived by these corporations and
We can then tell what they should be as
sessed at.
Gas to the banks we find from the
Bank Commissioners report, ON the 1st
Of January, 1886. that there was $S3,.
000. 900 ON deposit. The Assessors re.
ports showed that there was only $ll ,O0O,-
600 cash in the State and taxes were paid
only on that amount. Thus the banks
escaped paying taxation on over sc. .OOO,.
000. The banks, under the law, are not
required to make the same affidavits or
ststements u private individuals. They
have clever way of telegraphing to East
ern correspondents just before the lst
of March Of each year, instructing them
TO purchase large amounts of United
States bonds on account of California
bAnkA Then when the Assessor GENES
Around, the urbane banker deducts the
amount Of the purchase price of the
boads from the amount of money actually
In IL vaults, and the Assessor, looking
at the sum returned for taxation. feels
that If that il all the money the bank
has on hand he will immediately with.
draw his modest deposit and bury it in
~ back yard. This telegraphing orders
10 purchase bonds is merely fiction,
and only serves to ease the consciences
Of the bankers who make the returns. |
The money is never sent out of the
State, but the bankers consider that
they are obligated to their New York
As to county bonds,
they are never found. The banks pur.
chase them, but when the Assessor
comes around the bonds have been sent
out of the State, or transferred to some
person who does not return them for
taxation.
Mot over five per cent. of the personal
of the State is returned for
taxation, and the burden OF taxation is
thrown on the realty. Take for in
stance some of the wealthy men of San
Francisco, who live in handsomely fur
nished houses, and see how they report
property. Some of them have
Inrniture that is worth $4,000, and
they will unblushingly turn it in at
$1,000. Thus it goes all over the State"
After stating that this county should
have q new official map made at once,
and saying few good words in favor of
the present Democratic State admins.
tratiop, Mr.. Gaffey handed the reporter
! copy of the State Boards instructions
to Assessors, and boarded the train for
SANTA, Mon ca.
INSTRUCTIONS TO ASSESSORS.
sThe members of the State Board of
Equalization are about TO make their an.
nual visit to the several counties, to
your assessment and consult
with you in reference to valuations.
Meanwhile. your attention is called to
certain matters.
There is only one rule of valuation,
aud that IL the one prescribed by law, to
wits full cash value. There is q
presented to each Assessor to
assess his county by relation of values
to those of an adjoining county. You
are not warranted in SO doing; the
duty Of adjusting the relation of assess.
ments between counties is one belong.
ing to the State Board. Experience
should teach you that an undervaluation
g unjust to,a large portion Of our tax
paying constituents.
There ia an impression that the Asses.
n
;axes from persons owning real estate.
such il not the case. The law knows
no distinctions between persons. Sec.
ion .3848, Political Code, provides that
,fter demand by the Assessor and neglect
% pay the poll tax by the person liable
% pay the same. the Assessor must col
ect, ct once, by seizure and sale of any
psrsonal property owned by such per.